Senco Gold

About Senco Gold IPO

Incorporated in 1994, Senco Gold Limited is a pan-India gold and diamond jewellery retailer. Under its brand name, Senco Gold and Diamonds, the company offers a diverse jewellery collection, including gold jewellery, diamond jewellery, platinum jewellery and studded jewellery of various forms. These ornaments are offered across multiple price points ranging from ₹ 2,000 to ₹ 500,000 to maximise customer base.  

It is one of the largest organised jewellery retail players in the eastern region of India. As on 31 March 2023, the company has 136 showrooms across 13 states, including 61 franchisee showrooms and an online platform.    

Senco offers more than 1,20,000 designs for gold and 69,000 designs for diamond jewellery. The jewellery is designed by its team of 20 in-house designers and manufactured by over 170 karigars in Kolkata, West Bengal and other parts. 

Its manufacturing facility is located in Howrah, West Bengal. It had 2,138 employees as of 31 March, 2023 and its jewellery are exported to Dubai, Malaysia and Singapore. 

The company operates in the Indian gems and jewellery market, which accounted for approximately ₹ 4,700 billion in FY23, with gold jewellery dominating the overall market with a 66% share. 

And now, Senco Gold Limited is coming out with its initial public offer (IPO). The IPO will be an offer for sale as well as a fresh issue, the proceeds from which will be utilised for funding working capital requirements and general corporate purposes. 

 Here are key details about the Senco Gold IPO:

Financial snapshot

Here’s a quick look at Senco Gold IPO’s strengths, weakness, opportunities and risks (SWOT analysis)

Strengths and opportunities

1. Strong brand name with a legacy of over five decades. It has also been consistently ranked 2nd by TRA’s Brand Trust Report in the jewellery category for the last four years.
2. Witnessed a 15.3% CAGR growth in its revenue from operations between FY21 and FY23. Meanwhile, its net profit grew at a CAGR of over 37% during the same period.
3. Operates 136 showrooms across India as of 31 March 2023 while maintaining a balance between company operated and franchise showrooms to garner operating leverage. 
4. Diverse product offerings that cater to men, women as well as the gen Z and the millennial generation with light and affordable jewellery through various brands like Everlite, D’Signia and Aham. 

Risks and threats

1. Operates in a highly competitive industry, competing with listed peers like Titan (which operates the Tanishq brand), Kalyan Jewellers and PC Jeweller. 
2. Requires a significant amount of working capital and has a total working capital sanction limit of ₹2,073 crore as of 31 March, 2023. The inability to meet working capital requirements may impact business. 
3. Primarily dependent on the sale of gold jewellery accounting for 91%, 91% and 89% of total revenue from operations in FY21, FY22 and FY23, respectively. 
4. Directly affected by the fluctuations in the market price of gold and diamonds. For FY21, FY22 and FY23, the company incurred expenses of ₹1,974 crore, ₹2,769 crore and ₹3,070 crore respectively, towards purchase of raw materials. 
5. Has experienced negative cash flows from operating and investing activities in the past. 
6. Obtains gold on loan basis from bullion banks which are subject to RBI regulations as well as depends on its credit ratings.

Senco Gold IPO details

| Senco Gold IPO date 

The company has filed its Draft Red Herring Prospectus with the market regulator SEBI. The offer document filed by the company with the SEBI mentions that the Senco Gold IPO’s opening date – in other words, the Senco Gold IPO launch date – will be 4th July 2023. The Senco Gold IPO closing date is 6th July 2023. After this, investors will be updated about the allotment status on 11th July 2023.

Investors, who have been allotted shares, can expect them to be credited to their demat account on 13th July 2023. The Senco Gold IPO listing date is 14th July 2023. The listing date is the date on which the shares of a company get listed on the bourses – NSE and BSE. 

| Senco Gold IPO Price Band

The entire IPO is a book-built issue. The Senco Gold IPO price band has been set between ₹301 and ₹317 per share. Interested investors can choose a price within this band to apply for the IPO. 

The Senco Gold IPO listing price will be determined on 14th July 2023. The listing price is the price at which a company’s shares debut on the stock exchanges.

| Senco Gold IPO Lot size

The Senco Gold IPO details have been declared. The Senco Gold IPO lot size is set at 47 shares and an investor can apply for a minimum of 1 lot. Meanwhile, the Senco Gold IPO issue size is approx ₹405 crore. 

How to pre-apply for the Senco Gold IPO?

You can pre-apply for the Senco Gold IPO on Upstox. The pre-application for this IPO, which means pre-apply open date, usually begins a day before the IPO opens for subscription. 

Follow these steps to pre-apply for the IPO: 

1. Login to your Upstox account, using your six-digit PIN
2. After successfully logging in, click on ‘Discover’
3. On the Discover tab, you will find the ‘Invest in IPO’ section
4. Under the Invest in IPO section, look for the ‘Senco Gold IPO’ tab and click on it
5. Now fill in all the required information, like ‘bid price’ and ‘lot size’
6. Confirm and click on ‘Pre-Apply’
7. Accept the mandate on your UPI app

How to apply for the Senco Gold IPO?

If you are interested in this investment opportunity but unsure how to apply for the Senco Gold IPO, here we are listing out the steps for you. 

When the public issue opens for subscription, one can follow this step-by-step guide on how to apply for the Senco Gold IPO on Upstox: 

1. Login to your Upstox account, using your six-digit PIN
2. After successfully logging in, click on ‘Discover’
3. On the Discover tab, you will find the ‘Invest in IPO’ section
4. Under the Invest in IPO section, look for the ‘Senco Gold IPO’ tab and click on it
5. Now fill in all the required information, like ‘bid price’ and ‘lot size’
6. Confirm and click on ‘Apply’
7. Accept the mandate on your UPI app

How to check the Senco Gold IPO allotment status?

When the allotment process is completed, you can check the status of your application on the Upstox app. Share allotment is generally done around five to six days after an IPO closes. 

Here’s a step-by-step guide on how to check the Senco Gold IPO allotment status:

1. Login to your Upstox account, using your six-digit PIN
2. After successfully logging in, click on ‘Discover’
3. On the Discover page, you will find the ‘Invest in IPO’ section
4. Under the Invest in IPO section, you will find the ‘View all’ option
5. Once you click on ‘View all’, you will be directed to the ‘IPO’ tab
6. In the ‘IPO’ tab, click on ‘My applications’ 
7. In ‘My applications’, under the History section, your Senco Gold IPO allotment status will be mentioned

Open a demat account with Upstox to apply for the Senco Gold IPO

To apply for the Senco Gold IPO, you need to mandatorily have a demat account. A demat account helps you hold the shares you buy in a dematerialised format. If you don’t have a demat account yet, you can open one with Upstox by visiting our website or by downloading the app.

Here is a step-by-step guide on how to open a demat account with Upstox:

1. Click here to visit the demat account opening page on the Upstox website. 
2. Enter your phone number and other essential details to begin opening a demat account.
3. Upload the scanned copies of your PAN, Aadhaar card, a cancelled cheque, and your bank statement as needed. 
4. Complete the e-verification using the OTP sent to your registered mobile number. 

This is all it takes to open a demat account with Upstox. Easy and quick, right? 

Upstox – trading app to apply for the Senco Gold IPO

Applying for IPOs with Upstox is extremely easy. The user-friendly interface and top-notch security make Upstox one of the leading trading apps in India. 

You can apply for the Senco Gold IPO on Upstox, provided you have a demat account. As mentioned in the previous section, you can simply follow the steps to open a demat account with Upstox. The biggest advantage is that when you apply for an IPO using your Upstox account, the brokerage charges are zero. 

In fact, courtesy of its robust features and minimal charges, Upstox is among the most preferred trading apps. Lakhs of Indians trust Upstox as it is a reliable trading platform that makes IPO applications easy.